Practice Problems 1. Based on the following trial balance for Sal's Beauty Shop. prepare an income statement, statement of owner's equity. and a balance sheet. Sal made no additional investments in the company during the year. Sal's Beauty Shop Cash... Accounts receivable. Beauty supplies. Beauty shop equipment. Accounts payable. Sal Style, Capital. Sal Style, Withdrawals. Revenue carned. Beauty supplies expense. Rent expense Wages expense.. Totals Trial Balance December 31 $6,500 475 2,500 17,000 $ 745 21,155 36,000 72,000 3,425 6,000 22.000 $93,900 $91,900 2. James Haley owned a sailboat and was tired of his current job. He decided to open a business that provides day sails to tourists in his hometown. Prepare journal entries to record the following transactions. May 1 May 2 May 3 May 4 May 5 May 10 May 12 May 19 May 22 May 25 May 31 May 31 Haley invested $20,000 cash and his sailboat valued at $90,000 in the business Haley paid $3,000 cash for office equipment to help him keep track of business Haley bought sailing supplies costing $2.500 Haley negotiated with the harbor master and paid $500 cash for the firm's dock Haley paid $1,800 cash for a six-month rance policy Haley received $2,000 cash from clients for his first tour Haley provided a $3,500 tour on credit, the customer has agreed to pay within 10 days Haley paid for the sailing supplies originally purchased on May 3 Haley receives payment on the account from the client entry on May 12 Haley received $2,750 cash for additional tour Haley paid his deck hand a salary of $1,000 Haley withdrew $2,000 for personal use